Unit price growth is expected to outpace house price growth over the next two years, presenting new investment opportunities for buyers.

A recent KPMG analysis highlights the impact of rising house prices, with more suburbs reaching million-dollar medians and land supply constraints driving demand for more affordable unit options.

KPMG Chief Economist and Partner Brendan Rynne predicts that this increased demand will fuel further unit price growth. He forecasts unit prices will rise by 4.6% in 2025, compared to 3.3% for houses.

“The shift is largely driven by ongoing affordability constraints, particularly in capital cities where escalating detached house prices have priced out a large portion of the population,” Rynne explains. “Attached dwellings provide a more accessible entry point, broadening the buyer pool.”

The analysis also predicts that in 2026, Melbourne and Sydney will experience the strongest unit price growth, reinforcing their appeal to investors and homebuyers seeking affordability within major urban centres.

According to PropTrack data, as of February 2025, Sydney’s median house price stood at $1.437 million, while the median unit price reached $815,000—higher than median house prices in both Hobart and Darwin.

Melbourne’s median house price was $898,000, with median unit prices at $583,000, further solidifying the case for continued unit market strength.

For investors and homebuyers alike, these trends underscore the financial viability of unit investments as affordability pressures reshape the Australian property market.